Crude Oil Price Forecast – Crude Oil Markets Drift Toward Support

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session on Thursday after initially breaking above the 50 day EMA. As we broke down from there, the market reached towards the $54 level, an area that is starting to show signs of support. At this juncture, the crude oil markets have been consolidating on longer time frames, and therefore it’s likely that we will continue to see buyers step in at these levels. The $52.50 level should be massive support, and with the jobs number coming out on Friday we could get a little bit of volatility that offers value. Ultimately, I fully anticipate seeing this market reached towards the 200 day EMA above which is colored in blue.

Crude Oil Forecast Video 01.11.19

Brent

Brent markets obviously did the same thing during the day, breaking below the $60 level. There is a certain amount of support underneath that extends all the way down to at least the $55 level so I’m looking for signs of support underneath the turnarounds are buying. The 50 day EMA has offered a bit of resistance but it’s only a matter of time before market participants try to get this rally going to take out the 200 day EMA. I believe that we are trying to establish a longer-term consolidation area, so as we are closer to the bottom than the time, I’m looking for some type of balance to take advantage of going forward, although I recognize it will probably be very choppy in doing so.

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